The Merricks Capital China portfolio is a concentrated, high conviction, long only portfolio of 8-15 high quality Chinese companies operating in structurally favourable growth industries over a long-term investment horizon, unconstrained by any reference index.
The Chinese economy is undergoing an unprecedented expansion and structural shift, transitioning from a debt-fuelled infrastructure and export-driven economy to one that is powered by a growing number of middle-class consumers.
This economic transition and structural shift is unmatched in scale and the Merricks Capital investment team is dedicated to finding the best-in-class companies in those industries most exposed to the benefits of the dislocation. In particular, the focus is on those sectors servicing the consumer with innovative technologies.
Some of the current themes include technology such as internet media, e-Commerce and 5G; health care; The “One Belt & One Road” initiative; education; environmental protection; insurance; and the broader “catch-all” theme of general consumerism.
The Merricks Capital China portfolio applies a disciplined investment process which focuses on organic idea generation and deep fundamental analysis of sectors and companies using Merricks Capital’s proprietary models.
The distinctive Merrick Capital investment approach is accompanied by an experienced and skilled team. Our China team has spent almost 20 years travelling extensively in China, seeking the best companies and business models; building a wide range of contacts with both public and private companies and with local investors.